Niles businessman charged with defrauding several local governments

A man who allegedly forced employees to give back some of their paycheck for publicly contracted jobs has been charged with defrauding several government agencies.

Alan M. Harris, 46, of Niles, is charged with theft of government property and mail fraud, both felonies.

Between 2010 and 2011, Harris’ company, North Suburban Asphalt Maintenance, was awarded more than $400,000 worth of public works projects from the villages of Buffalo Grove, Glenview, Mount Prospect, Palatine and Volo, said Maura Possley, a spokeswoman for Illinois Attorney General Lisa Madigan. Harris has also done business with Ogle County and Adlai E. Stevenson High School in Lincolnshire.

Authorities allege that Harris forced his employees to give back some of their paychecks each month. That violates the state's Prevailing Wage Act, which requires employers to pay a fair and honest wage for projects that are publicly funded, according to a news release.

Harris also allegedly submitted falsified statements to show that he was paying his employees a legal rate.

“I’m very disappointed that a contractor would use our contract to commit fraud,” said Reid Ottesen, Palatine’s village manager. “We followed all the rules. We got certified payrolls, (and) we made payments based on those.”

Palatine awarded contracts to Harris’ company in 2010, 2011 and 2012, separately, because he had offered the lowest bid to fill cracks on the village’s roads. The contracts were worth about $40,000 each year. Ottesen said the 2012 contract was awarded before he was first contacted by the attorney general’s office.

Harris is out free on a $100,000 bond but he could not be reached by phone or email at his business. He’s scheduled to appear in court on Oct. 25.